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The big shareholder groups in Xinchen China Power Holdings Limited (HKG:1148) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.
Xinchen China Power Holdings is a smaller company with a market capitalization of HK$558m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about 1148.
View our latest analysis for Xinchen China Power Holdings
What Does The Institutional Ownership Tell Us About Xinchen China Power Holdings?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Xinchen China Power Holdings does have institutional investors; and they hold 5.8% of the stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Xinchen China Power Holdings, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Xinchen China Power Holdings. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Xinchen China Power Holdings
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
I can report that insiders do own shares in Xinchen China Power Holdings Limited. It has a market capitalization of just HK$558m, and insiders have HK$6.4m worth of shares, in their own names. This shows at least some alignment, but I usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.